1. LOS ANGELES UNIFIED SCHOOL DISTRICT JOB ORDER CONTRACTING Copyright © 2004 The Gordian Group, Inc. all rights reserved

2. Copyright © 2003 The Gordian Group, Inc. all rights reserved 2 Introduction Job Order Contracting Provides: A Way to Accomplish a Large Number of Individual Projects with a Single Competitively Bid Contract On-call Contractors Ready to Perform a Series of Projects for Competitively Bid Prices Typical Mission for Job Order Contracting: Small to Medium Sized Straightforward, Standalone Construction, Renovation or Demolition Projects Complete the Work of a Non-performing Contractor Punchlist Extra Work Take Over Work for Defaulted Contractor Sensitive Projects No Time for Traditional Bidding or Drawn-out Negotiations High Priority

3. Copyright © 2003 The Gordian Group, Inc. all rights reserved 3 Why JOC ? Traditional Bid System can be Slow and Costly Months from Project Identification to Contract Process Can Be Complicated Adversarial Relationship Between Owners and Contractors JOC Offers a Cost Effective Alternative to Traditional System Faster Response – Days or Weeks instead of Months Well Defined, Goal Oriented Administration Based upon a Partnership Between Owners and JOC Contractors JOC is Another Way for Owners to Get Work Done in Addition to: In-House Work Force Requirements Contracts Single Project, Lump Sum Bidding

4. Copyright © 2003 The Gordian Group, Inc. all rights reserved 4 JOC Contract Documents Construction Task Catalog (CTC) Pre-Priced Construction Tasks Based on Local Labor, Material & Equipment Costs Customized for Each Owner

5. Copyright © 2003 The Gordian Group, Inc. all rights reserved 5 Pre-Bid Guidance to Contractors Prior to Bidding the Owner Can Not: Identify or Commit to any Specific Project or Location Identify or Commit to any Specific Quantities or Tasks JOC has a Fixed One Year Initial Term One Option Term A Guaranteed Minimum Value JOC has a Pre-established Maximum Contract Value $5,000,000 Maximum (Set By AB-14)

6. Copyright © 2003 The Gordian Group, Inc. all rights reserved 6 Bid Requirements Competitive Bid Must Bid Three Adjustment Factors - Normal School Hours 7am-3pm After Normal Working Hours 3pm-11pm Premium Hours 11pm-7am, Weekends & Holidays Same Adjustment Factors Apply to All Tasks in the UPB Must Include all Indirect Costs & Profit Adjustment Weighted According to Anticipated Use Lowest Adjustment Factors From an Acceptable, Responsive, Responsible Bidder Wins!

7. Copyright © 2003 The Gordian Group, Inc. all rights reserved 7 JOC Execution Process Joint Scope Meeting Develop Scope of Work Request for Proposal Contractor Develops Proposal Selects Tasks and Quantities Prepares Incidental Drawings & Sketches Develops Schedule Prepares List of Subcontractor Contractors Proposal Reviewed and Approved Issue Lump Sum Job Order

8. Copyright © 2003 The Gordian Group, Inc. all rights reserved 8 JOC - Why It Works JOC Is A Series Of Individual Small Projects Contractor Is Guaranteed Only a Minimum Amount of Work Contractor Has A Continuing Financial Incentive To Provide: Responsive Services Quality Work Lower Cost Future Job Orders Tied to Contractor Performance No Obligation To Award Specific Projects Owner can Use All Other Methods For Accomplishing Projects